Posts Tagged ‘american dream’

The Government Cosigning for the American Dream

May 23rd, 2016 No comments

ron-thomas-sr-rona-homes-founder-mmhf=louisville-show-chairman-posted=mhpronews-com-50x50-Since the end of WWII millions of Americans have achieved the American Dream with the US Government co-signing for their house loans until 2005. The banks never did buy a score below 650, but with the government co-signing for the loan the banks bought the deal. These buyers often lived in their home 20-30 years. They purchased it for $75,000 and sold it for $150,000. With their equity, a small savings and Social Security they could retire. Not so today!

The banks still do not purchase deals below 650 credit score, the government quit co-signing and so millions are forced to rent. Some rentals are taxpayer subsidized. There are millions of apartments being built. The people are paying $800-$3,000 a month in rent. There is almost no way they can save up a 20% down payment. Many are thus doomed to renting and can never achieve the American Dream.

With the govenment out of the picture, it has opened the doors for entities to charge exorbitant interest rates of up to 18% to purchase a home. This is not unlike prohibition. When the goverment quits, the void is filled by people from the dark side.

95% of these people are paying rent each month instead of a house payment. Most have always made their payments. Fannie and Freddie are still throwing off millions in profits. It works!!

The land and all the improvement cost is equal to 50%-60% of the cost of the home. In our manufactured home community, we lease the land, permits and improvements for about $300 mo. That’s is a phenomenon!!

There is nothing these people can look forward to because the gov’t has failed to help them and because of that they are condemning millions of Americans to stay down on the plantation and never achieve their American Dream.

I am in the Manufactured Home Industry. I call my industry a phenomenon. Here’s why – “It’s too good to be true.” That’s a phenomenon.

Never before in the history of the world has a country been able to give their people a home for 1 to 2 years annual income. That’s a phenomenon.

If we had FHA, Fannie and Freddie co-signing for loans in a land-lease, it would look like this; Banks could get 150-200 basis points over a real estate loan. This would currently equate to about a 6% chattel loan. This is a premium for banks of 50%. These consumers could purchase a $70,000, 1500 square foot manufactured home with 3 bedrooms 2 bathrooms with 3-5% down, 15 year loan at approx. $550 per month (depending on the market, that should cover PITI). They could put their home in a manufactured home community for approx. $300 monthly site lease, for a total home payment of $850 per month. Their debt would not exceed roughly $67,000. They would benefit with interest tax credit to lower their cost even more and pay off their home in 15 years.


The country has been hitting on 4 of 8 cylinders. The reason is the 800 lb. gorilla is not in the game. We all know the impact the housing market has on the economy. Getting all the industries supporting the housing industry could easily get to 6, 7 or 8 cylinders fired up. There is no other way. The stock market is not going to go a lot higher, the auto industry is maxed out, so there is no other way to move the economy in a meaningful way. ##

RonThomasSrMMHFChairmanRonaHomesFounder-PostedIndustryVoices-MHProNews-Ronald A. Thomas
MMHF Chairman
Rona Homes founder

Editor’s Note: A video interview with Ron Thomas Sr. is linked here. Other perspectives on the finance or other MH related issues are encouraged.

Post 2012 Tunica Show Industry Perspective

April 5th, 2012 2 comments

The Tunica Show was good! Perfect weather, good number of attendees, good attitudes, and a few lenders wanting to approve new dealer applications: this is all most refreshing! You would think all the gloom and doom is over.

One supplier told me that he had sold over 100 floors as of Thursday evening. Everyone was upbeat.

This industry has still got it – if the government would get out of the way, get their foot off our necks, and allow the financing to take place. It would not only let this industry boom, but the retail boom would cause manufacturing to increase, and all the downstream industries would see their respective businesses increase as well (suppliers, freight companies, delivery/set-up contractors, insurance companies). Even the site-built industry would get a boost from the up tick in economic activity.

Putting all those people back to work would also avoid more foreclosures, reducing the possibility for another round of bailouts.

Many of the bureaucrats don’t seem to understand their “unintended consequences” are killing off an entire industry, in addition to stealing the “American Dream” of home ownership from at least an entire generation of voting constituents! There is some promising activity ongoing toward the modification of the Dodd-Frank dreadnaught, but the results have yet to make it to the street. We’re watching that with great interest.

The bureaucrats aren’t focused on us right now, anyway. The big issues in the Middle East are the buzz in today’s news. I am worried too! If Israel strikes Iran soon (and they will, if/when they feel the need), gasoline will spike. Record prices could push us over the edge.

The White House is trying to negotiate (tough sanctions, tough talk, etc.) with a nation that is by design apt to miss-speak, mis-represent, or outright lie in order to mislead an opponent. How effective will those negotiations be? Only time will tell, especially in light of the President’s family lineage.

Even without a preemptive strike, gas will soon reach $4.80/gal. If Israel does move against Iran, it will surge past $5.00. People are already foregoing vacations, major purchases, medicine, etc, to buy gas to get to work. $5.00/gal gas will create more job losses, lower consumer confidence, a lower GDP that will lead to a lower S&P credit rating for the country, and push us along that slippery slope towards a full-blown depression.

This President doesn’t understand what a tough spot we as a country are in, much less how to fix it. He has spent his time on fundraisers for his re-election campaign. After all, he has his priorities!

The information coming from this administration can be cloudy at times, to be very genteel in my choice of words. They are lying to us about unemployment being 8% – it is closer to 18% when you consider the thousands of under-employed who lost good paying positions and are now having to work one or more minimum wage jobs just to try to make ends meet.

His delay on the Keystone Pipeline (until after the election) is also bogus.

A) The southern portion of the country (Cushing OK to the Gulf Coast) is going forward in spite of Obama. After trying to stop it in Congress – and failing – he then went to Cushing and made a speech claiming he is letting it go forward. Letting it go forward? OH, PLEASE!!!

B) We currently have to ship the oil by train from Canada to Cushing. Guess who owns the railroad? Warren Buffett. (A mere coincidence.)

Romney will be the GOP nominee, and he will have a steep hill to climb to beat Obama. 47% of the people in America pay no taxes – they will vote for him (if they vote). Obama has record amounts of money and the George Soros controlled mainstream media in his pocket. Romney will need lots of help to cleanse the White House. On a bright spot, a recent CNN poll showed more independent voters leaning toward Romney than Obama. (For that fact to even get air play on CNN was big, in my eyes.) You may recall that it was the huge number of independents who voted for Obama in 2008 that tipped the election to Obama’s favor.

If Romney doesn’t make it, we are in deep trouble. We cannot afford another four years of this government.

Without financing, this industry’s retailers cannot survive. Without retailers, manufacturers cannot survive. This stops the suppliers and the other down-line industries associated with us. The lenders I’ve spoken to cite the new raft of legislation – Dodd/Frank, S.A.F.E. Act, etc. – as being too restrictive. “Unintended consequences.” Who is going to fix this mess? It will be you and I, through our own efforts, not this administration! # #

Submitted by

R. C. “Dick” Moore

Dick Moore Housing, Inc.